Full of Energy - Energie AG Oberösterreich

ANNUAL REPORT2007/2008THE GROUPGROUP MANAGEMENT REPORTTHE ENERGY SEGMENTTHE WASTE MANAGEMENT SEGMENTTHE WATER SEGMENTCONSOLIDATED FINANCIAL STATEMENTSthe previous year amounts to about 400 GWh or31%. It is mainly due to two reasons, namely thetake-over of the CMOÖ power station, as well as theoptimized use of thermal power stations, which be -came possible on account of the high electricity marketprices. By fully taking over CMOÖ, which had beena 50% subsidiary, the production portfolio of EnergieAG for electricity and heat has been expandedsince 01 July 2008. CMOÖ operates a heat-drivencombined heat and power unit at the Laakirchenlocation and supplies industry with electricity andheat. With the end of the test phase of the 400 MWcombined-cycle gas turbine power station at Timelkam,additional minor electricity volumes were obtainedas of August 2008.During the 2007/2008 business year the total consolidated electricity generation amounted to 12,364GWh, which is an increase of 1,982 GWh or 19%over the previous year.In relation to electricity sold without proprietary trad -ing volumes, 39% of electricity generation came fromown generation during the expired business year,19% from procurement rights, and 42% from thirdpartysources. The rate of own generation thus wentup from 48% to 58%, i.e. by one fifth, since last year.MASSIVE EXPANSION OFELECTRICITY PRODUCTION CAPACITIESELECTRICITY PROCUREMENT STRUCTURE WITHOUT PROPRIETARY TRADING IN %2007/2008Rate of own coverage: 58%third-party sources43%16%23%19%hydraulicproductionprocurementrightsthermalgeneration2006/2007Rate of own coverage: 48%third-party sources52%14%18%16%hydraulicproductionprocurementrightsthermalgeneration40Own electricity generation of Energie AG amountedto a volume of 4,227 GWh during the expired businessyear, which corresponds to an increase over theprevious year of about 800 GWh or 23%.Further electricity quantities of more than 8,137 GWhwere obtained from third parties, mainly from electricitytrading markets (OTC, stock exchanges). The17% increase in external electricity volumes is mainlythe result of expanded proprietary trading.CONSOLIDATED ELECTRICITY PROCURED BY THE GROUP9,0008,0007,0006,0005,0004,0003,0002,0001,0002,2542006/2007Own generation2007/20082,8001,1782006/20072007/2008Electricity fromprocurement rightsConstruction work and the beginning of the test phaseof the 400 MW combined-cycle gas turbine (CCGT)power station at the thermal production site at Timelkamproceeded according to schedule. The gas turbinewas first ignited at the beginning of August 2008, andthe first steam production was successfully initiatedin September 2008.In November 2008 the new CCGT power station beganits test operation.1,4272006/20076,950 8,1372007/2008Electricity fromthird-party sourcesIN GWhOn account of the infrastructure available at thelocation, as well as the fact that the plant is close tothe national gas pipeline network (particularly to thenatural gas storage tank at Puchkirchen), and thepossibility to take off electric energy via the grid ofEnergie AG, Timelkam is an ideal location for build -ing this power station.The power station was built by Gas- und DampfkraftwerkTimelkam GmbH (GuD Timelkam GmbH).This company is a joint venture of Groupe E AG,Fribourg, Switzerland, and Energie AG OberösterreichKraftwerke GmbH (Kraftwerke GmbH). The latteris responsible for operating the new CCGT powerstation.The new CCGT power station promises an absolutepeak value of about 60% in energy efficiency duringelectricity production, as it uses state-of-the-art technologies,as well as natural gas as a fuel. It is possibleto lower the specific CO 2 emissions by 65% andthe specific NO x emissions even by 90%, as com paredto the existing plant.Once the CCGT power station has been taken into fulloperation, the existing power stations, i.e. the coalfiredblock Timelkam II and the gas turbine plantTimelkam III, will be put on stand-by.With the full operation of the new plant, the owncoverage rate of the Energie AG Group will go up toabout 70%.In addition to completing the CCGT power station atTimelkam further locations are being in-vestigatedand secured as own electricity production sites. Theavailable infrastructure facilities, as well as the overallconditions offer potential for further highly efficientplants.Due to the ambitious targets set by the EU concern -ing the expansion of eco-electricity production, as wellas higher market prices, efforts to expand hydro powergeneration are also being stepped up.The approval procedure is currently pending for thehydro power station at Oflek along the GroßarlerArche River in the province of Salzburg.A technical reconnaissance analysis was prepared forthe Kleinarl power station, and first coordination talkswere positively completed. It is planned to initiate theof ficial procedure in 2009. For the Bad Goisern powerstation the approval procedure will also be launchedin 2009.The application to initiate the preliminary procedurehas been submitted for the expansion of the hydropower station at Stadl-Paura, for which an approval isrequired under the environmental compatibility legislation.Energie AG is vigorously pursuing projects to furtherdevelop the technology and economics of electricitygeneration, while taking account of efficiency and41